Popular

August 3, 2011

Cross Border Resources Updates Current Permian Basin Operations

by Sam Savage

SAN ANTONIO, Aug. 3, 2011 /PRNewswire/ -- Cross Border Resources, Inc. (OTCQX: XBOR), ("Cross Border" or "the Company") today provided an update on its current Permian Basin operations. The Company continues an active second-half drilling program with 21 wells scheduled in the second half of this year, accelerating its first-half pace.

(1) High fluid level in tubing. Operator evaluating for possible
intervention of a water zone.

"The approximate estimated ultimate recovery for Abo wells, such as the Leo 3 Fed Com. #1H, is 200 to 250 MBOE," said E. Will Gray II, Chairman and CEO of Cross Border. "We hold identical interests in three potential offsets to this well. All four wells were listed as possible reserves in our last reserves report, prepared by Joe C. Neal & Associates, independent reservoir engineers.

"Separately, Cimarex has two direct offset wells to the Leo 3 Fed Com. #1H, now on production, that currently average 369 bopd/242 mcfd and 230 bopd/163 mcfd, respectively," Mr. Gray added. "We are pleased with the continuing progress we see in the Abo and our other New Mexico plays."

Wolfberry Lease Acquisition

Cross Border has closed on the purchase of an additional 20% working interest in 480 gross acres in the Six Shooter project targeting the unconventional Wolfberry play, located in Texas' Howard and Martin counties. The Company will participate in the first two wells, with the first scheduled to spud in late August or early September, on a 1/3 for 1/4 promoted basis.

The acreage adjoins a 320-acre tract in which Cross Border has a 10% working interest. The entire project has 11 prospective drilling locations across approximately 800 acres in the Wolfberry, located along the eastern shelf of the Midland Basin. The trend encompasses the Sprayberry/Dean, Wolfcamp, Canyon, Strawn, and Mississippian formations.

Earnings Release

Cross Border expects to announce its second-quarter and first-half earnings on or before August 15, 2011.

About Cross Border Resources

Cross Border Resources is an oil and gas exploration company, headquartered in San Antonio, Texas, focusing on non-operated opportunities with proven operators within the Permian Basin. Cross Border consists of over 800,000 gross (approximately 300,000 net) mineral and lease acres within the state of New Mexico targeting various emerging plays including the 1st & 2nd Bone Spring, and more conventional plays such as the Abo, Yeso, San Andres as well as our Wolfberry acreage located in West Texas. Cross Border Resources currently owns approximately 31,000 net acres within the Permian Basin.

Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom the Company has contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.